Muthoot Finance Declares ₹30 Interim Dividend; Shareholders Urged to Update KYC by April 27

Muthoot Finance has declared an interim dividend of ₹30 per equity share for the financial year 2025-26. The record date for determining eligible shareholders is April 17, 2026. Shareholders must ensure their KYC and PAN details are updated by April 27, 2026, to comply with new TDS regulations.

Dividend Details and New Tax Rules

Muthoot Finance, India's largest gold loan NBFC, has declared an interim dividend of ₹30 per equity share for the financial year 2025-26. The record date to identify eligible shareholders is April 17, 2026. This dividend payment coincides with new Tax Deducted at Source (TDS) regulations under the Income-tax Act, effective April 1, 2026. Under these rules, TDS on dividends will be 10% for shareholders providing a valid PAN, but 20% for those without a valid PAN or with an invalid one.

Impact for Shareholders

Timely compliance with tax rules is crucial for shareholders. Failing to submit updated KYC and PAN details by the April 27, 2026 deadline could lead to a higher TDS rate of 20% or dividend withholding. The company is clarifying these requirements to help shareholders meet the evolving tax compliance standards and receive their full dividend payout.

Company Background and Past Issues

Muthoot Finance has a history of consistent dividend distribution, reflecting its stable financial performance. In FY2023-2024, it paid total dividends of ₹24.0 across four instances, and in FY2024-2025, it distributed ₹26 across seven instances. The company, India's leading gold loan NBFC with over 7,500 branches, has also faced regulatory penalties. In July 2024, the RBI fined the company ₹1.9 lakh for KYC non-compliance (multiple UCICs). In November 2020, it received a ₹10 lakh penalty related to LTV ratio and PAN card issues.

Shareholder Action Required

Shareholders must actively update their Know Your Customer (KYC) and Permanent Account Number (PAN) details with the company by April 27, 2026. Physical folio holders, specifically, need to meet this deadline to avoid potential dividend withholding or a higher TDS rate.

TDS and Withholding Risks

Shareholders submitting incomplete or incorrect documentation by the April 27 deadline risk dividend withholding or a higher TDS rate of 20%. For physical folio holders, failure to meet KYC requirements by this date could result in dividend payments being withheld. Without a valid PAN, or if PAN is not linked with Aadhaar within the required timelines, the higher tax rate of 20% will apply.

Peer Comparison

Peers in the gold loan and NBFC space also maintain dividend policies. Manappuram Finance paid ₹2.5 per share in dividends in 2025 and operates on a quarterly payout system. IIFL Finance, another major NBFC, declared an interim dividend of ₹4 per share for FY2025-26, with a record date of January 29, 2026.

Next Steps for Investors

Investors should ensure their documentation and KYC are submitted by the April 27, 2026 deadline. Monitor company announcements for the dividend payment schedule after the record date. Shareholders can check Form 16A on the e-filing account for the credit of TDS once the dividend is processed.